TSE:8316

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Sumitomo Mitsui Financial Group

Executive Summary

Sumitomo Mitsui Financial Group, Inc., together with its subsidiaries, provides commercial banking, leasing, securities, consumer finance, and other services primarily in Japan. More Details


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Sumitomo Mitsui Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8316 is less volatile than 75% of JP stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 8316's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.1%

8316

-2.4%

JP Banks

-0.5%

JP Market


1 Year Return

-22.1%

8316

-20.3%

JP Banks

4.2%

JP Market

Return vs Industry: 8316 underperformed the JP Banks industry which returned -20.3% over the past year.

Return vs Market: 8316 underperformed the JP Market which returned 4.2% over the past year.


Shareholder returns

8316IndustryMarket
7 Day-1.1%-2.4%-0.5%
30 Day6.5%3.2%8.5%
90 Day-1.1%-0.9%9.6%
1 Year-16.8%-22.1%-16.5%-20.3%6.8%4.2%
3 Year-21.8%-32.8%-30.8%-38.4%7.3%-0.2%
5 Year-15.9%-33.2%-32.3%-43.3%31.0%16.4%

Long-Term Price Volatility Vs. Market

How volatile is Sumitomo Mitsui Financial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sumitomo Mitsui Financial Group undervalued compared to its fair value and its price relative to the market?

32.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8316 (¥3110) is trading below our estimate of fair value (¥4615.32)

Significantly Below Fair Value: 8316 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8316 is poor value based on its PE Ratio (84.2x) compared to the JP Banks industry average (10.6x).

PE vs Market: 8316 is poor value based on its PE Ratio (84.2x) compared to the JP market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: 8316 is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: 8316 is overvalued based on its PB Ratio (0.4x) compared to the JP Banks industry average (0.3x).


Next Steps

Future Growth

How is Sumitomo Mitsui Financial Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8316's forecast earnings growth (17.6% per year) is above the savings rate (0.05%).

Earnings vs Market: 8316's earnings (17.6% per year) are forecast to grow slower than the JP market (17.8% per year).

High Growth Earnings: 8316's earnings are forecast to grow, but not significantly.

Revenue vs Market: 8316's revenue (2.7% per year) is forecast to grow slower than the JP market (5.5% per year).

High Growth Revenue: 8316's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8316's Return on Equity is forecast to be low in 3 years time (5.8%).


Next Steps

Past Performance

How has Sumitomo Mitsui Financial Group performed over the past 5 years?

-15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8316 has a large one-off loss of ¥111.6B impacting its September 30 2020 financial results.

Growing Profit Margin: 8316's current net profit margins (2.4%) are lower than last year (23.6%).


Past Earnings Growth Analysis

Earnings Trend: 8316's earnings have declined by 15.6% per year over the past 5 years.

Accelerating Growth: 8316's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8316 had negative earnings growth (-90.1%) over the past year, making it difficult to compare to the Banks industry average (-21.4%).


Return on Equity

High ROE: 8316's Return on Equity (0.5%) is considered low.


Next Steps

Financial Health

How is Sumitomo Mitsui Financial Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: 8316's Assets to Equity ratio (20x) is moderate.

Allowance for Bad Loans: 8316 has a low allowance for bad loans (76%).

Low Risk Liabilities: 69% of 8316's liabilities are made up of primarily low risk sources of funding.

Loan Level: 8316 has an appropriate level of Loans to Assets ratio (38%).

Low Risk Deposits: 8316's Loans to Deposits ratio (58%) is appropriate.

Level of Bad Loans: 8316 has an appropriate level of bad loans (0.8%).


Next Steps

Dividend

What is Sumitomo Mitsui Financial Group current dividend yield, its reliability and sustainability?

6.11%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 8316's dividend (6.11%) is higher than the bottom 25% of dividend payers in the JP market (1.26%).

High Dividend: 8316's dividend (6.11%) is in the top 25% of dividend payers in the JP market (3%)


Stability and Growth of Payments

Stable Dividend: 8316's dividends per share have been stable in the past 10 years.

Growing Dividend: 8316's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (528%), 8316's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Jun Ohta (62 yo)

1.67yrs

Tenure

JP¥135,000,000

Compensation

Mr. Jun Ohta has been Group CEO, President at Sumitomo Mitsui Financial Group, Inc. since April 1, 2019 and serves as its Officer in charge of Public Relations Department, Corporate Planning Department, Fi...


CEO Compensation Analysis

Compensation vs Market: Jun's total compensation ($USD1.30M) is below average for companies of similar size in the JP market ($USD1.97M).

Compensation vs Earnings: Jun's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jun Ohta
President1.67yrsJP¥135.00m0.0019%
¥ 80.1m
Toru Nakashima
Senior Managing Executive Officer1.5yrsno data0.0012%
¥ 49.4m
Kohei Ohashi
SVP (IR Department)no datano datano data
Tetsuro Imaeda
Senior Managing Corporate Executive Officers & Group COO0.92yrno data0.00060%
¥ 25.6m
Toshikazu Yaku
Deputy Presidentno datano data0.0015%
¥ 62.7m
Haruyuki Nagata
Senior Managing Executive Officer1.5yrsno data0.0014%
¥ 60.5m
Katsunori Tanizaki
Senior Managing Corporate Executive Officer & Group CDIO5.67yrsno data0.0014%
¥ 59.2m
Masahiko Oshima
Deputy President2.67yrsno data0.0015%
¥ 64.4m
Naoki Tamura
Senior Managing Corporate Executive Officer & Head of Retail Business Unit2.67yrsno data0.0014%
¥ 58.0m
Gotaro Michihiro
Deputy President3.67yrsno data0.0015%
¥ 65.6m
Kimio Matsuura
Senior Managing Corporate Executive Officer & Co-Head of Wholesale Business Unitno datano data0.0015%
¥ 62.2m
Ying Hoong Chow
Managing Executive Officer & Co-Head of Asia Pacific Divisionno datano datano data

2.3yrs

Average Tenure

59yo

Average Age

Experienced Management: 8316's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jun Ohta
President1.67yrsJP¥135.00m0.0019%
¥ 80.1m
Toru Nakashima
Senior Managing Executive Officer1.5yrsno data0.0012%
¥ 49.4m
Haruyuki Nagata
Senior Managing Executive Officer1.5yrsno data0.0014%
¥ 60.5m
Kitayama Teisuke
Chairman of Sumitomo Mitsui Banking Corporationno dataJP¥128.00mno data
Takeshi Kunibe
Chairman of the Board1.67yrsJP¥137.00m0.0043%
¥ 181.6m
Masayuki Matsumoto
Independent Outside Director3.5yrsno data0.00011%
¥ 4.7m
Yoshinobu Tsutsui
Independent Outside Directorno datano datano data
Eriko Sakurai
Independent Outside Director5.5yrsno data0.00016%
¥ 6.8m
Atsuhiko Inoue
Director1.5yrsno data0.0015%
¥ 65.2m
Arthur M. Mitchell
Independent Outside Director5.5yrsno data0.000050%
¥ 2.1m
Masaharu Kohno
Independent Outside Director5.5yrsno datano data
Katsuyoshi Shinbo
Independent Outside Director3.5yrsno data0.00011%
¥ 4.7m

3.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: 8316's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sumitomo Mitsui Financial Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sumitomo Mitsui Financial Group, Inc.
  • Ticker: 8316
  • Exchange: TSE
  • Founded: 2002
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: JP¥4.262t
  • Shares outstanding: 1.37b
  • Website: https://www.smfg.co.jp

Number of Employees


Location

  • Sumitomo Mitsui Financial Group, Inc.
  • 1-2, Marunouchi 1-chome
  • Chiyoda-ku
  • Tokyo
  • 100-0005
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMFN.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 2002
8316TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYDec 2002
XMFDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2002
SMFGNYSE (New York Stock Exchange)ADR EACH REPR 1/5 ORD NPVUSUSDFeb 2003
XMFADB (Deutsche Boerse AG)ADR EACH REPR 1/5 ORD NPVDEEURFeb 2003
0LAFLSE (London Stock Exchange)ADR EACH REPR 1/5 ORD NPVGBUSDFeb 2003

Biography

Sumitomo Mitsui Financial Group, Inc., together with its subsidiaries, provides commercial banking, leasing, securities, consumer finance, and other services primarily in Japan. It operates through four se...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/05 08:08
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.